Nepal's cement producers seek self-sufficiency

Cement producers in Nepal have asked the government to formulate an improved policy so that the country can achieve self-sufficiency and boost exports. They have requested assistance in extracting and transporting raw materials as well as in the uninterrupted supply of power.

Rajesh Agrawal, managing director of Arghakhanchi Cement, said they could produce cement in sufficient quantities to meet domestic demand and export to India if they received government support.
"There is high demand for Nepali cement in Bihar and Uttar Pradesh states in India in particular," he said. He added that Nepal had high potential for supplying adequate raw materials.

Currently, around eight cement companies have their own limestone quarries, including privately-owned Ghorahi Cement of Dang, Sonapur Cement of Tulsipur, Arghakhanchi Cement of Bhairahawa, Sarbottam Cement of Nawalparasi, Shivam Cement of Hetauda and Maruti Cement of Mirchaiya. The remainder import limestone, making it difficult for them to compete with cheaper Indian cement. There are around eight cement factories in the country that have their own limestone quarries.

A number of new cement plants are in the pipeline while some of the existing ones have planned to expand their production capacity. Among the new companies, Hwangsi Shivam Cement, a joint venture, will be setting up its factory in Nawalparasi. It expects to manufacture 2Mta. Similarly, Arghakhanchi Cement will be expanding its production capacity to 1Mta from 0.4Mtas in the next 18 months.